Q.5 The total fixed cost of firm A is Rs. 12. Given below is its marginal cost schedule. Output (units) 123456 Marginal Cost (Rs.) 9724812 (i) Calculate Average Total Cost. Graphically represent Marginal Cost and Average Total Cost with respect to output. (3) (ii) The demand curve of the above firm (Firm A) is given by the equation P = 12-Q. Find the Marginal Revenue equation. Represent the demand line and the Marginal (Revenue Line in the same graph drawn for sub question (i ). (3) (iii) Find the output for maximum profit, the corresponding revenue, total cost and profit (or loss).

Q.5 The total fixed cost of firm A is Rs. 12. Given below is its marginal cost schedule. Output (units) 123456 Marginal Cost (Rs.) 9724812 (i) Calculate Average Total Cost. Graphically represent Marginal Cost and Average Total Cost with respect to output. (3) (ii) The demand curve of the above firm (Firm A) is given by the equation P = 12-Q. Find the Marginal Revenue equation. Represent the demand line and the Marginal (Revenue Line in the same graph drawn for sub question (i ). (3) (iii) Find the output for maximum profit, the corresponding revenue, total cost and profit (or loss).

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter11: Price And Output Determination: Monopoly And Dominant Firms

Section: Chapter Questions

Problem 6E

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